State Street Stake Pared by Activist Investor

By

Sharon Terlep

Updated Jan. 28, 2013 10:07 p.m. ET

Nelson Peltz is backing away from State Street Corp.

The activist investor's Trian Fund Management LP has sold part of the stake it disclosed when he pounced on the trust bank in October 2011, demanding a turnaround, according to people familiar with the decision.

While Trian pocketed a profit on the sale, the move came at a per-share...